US President Trump's new 10% tariff on Chinese goods has officially taken effect at 5am Greenwich Mean Time (1pm Taiwan time) on March 4th. China immediately responded with a strong counterattack, announcing a 10%-15% tariff on US agricultural products starting March 10th, and imposing export and investment restrictions on 25 US companies, demonstrating the country's resolute attitude in the trade war.
Table of Contents
ToggleNew US tariff policy takes effect, China responds swiftly
Reuters reports that the US has imposed a 10% tariff on Chinese goods on March 4th, bringing the cumulative tariffs on Chinese imports to 20%. The White House stated that this is in response to China's "failure to stop the flow of fentanyl into the US", accusing Chinese companies of illegally supplying the chemical precursors for the opioid drug fentanyl.
(Trump's massive disruption of global rules, is it beneficial for Ren?)
In response, the Chinese government firmly denied the allegations in its statement today, vowing to resolutely defend its own interests and condemning the US's unilateral tariff hike policy as a serious violation of international trade norms:
This move not only increases the burden on US businesses and consumers, but also undermines the foundation of economic and trade cooperation between Ren and the US.
The Chinese Ministry of Finance subsequently announced that starting March 10th, it will impose a 15% tariff on US products such as chicken, wheat, corn and cotton, and a 10% tariff on products such as soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables and dairy products. This is aimed at hitting the US agriculture sector and putting pressure on the Trump administration.
Escalating war of words, global markets in turmoil
This latest round of tariff pressure is the Trump administration's newest offensive in the trade war against Ren. As early as February 1st, Trump signed an executive order imposing a 10% tariff on Ren goods and a 25% tariff on products from Ren and Mexico (the latter two were delayed in implementation due to negotiations, but are now officially in place), foreshadowing further escalation of the Ren-US trade conflict.
CNA reports that Ren importers and exporters feel "bewildered" by the continuously escalating and unpredictable tariff policies, with some companies trying to stockpile goods or relocate production lines, but market confidence remains shaken.
Not just tariffs, Ren imposes restrictions on companies
In addition to retaliatory tariffs, Ren's Ministry of Commerce has also published a list of US companies subject to restrictions, and will impose export and investment restrictions on 25 US companies, taking the following measures:
Prohibit the export of civilian and military goods to these companies, and require the immediate cessation of ongoing related export activities.
In special cases, if export is deemed necessary, companies must apply to Ren's Ministry of Commerce.
Specifically, the affected US companies are mostly involved in the defense, aviation and artificial intelligence sectors.
Trade war erupts, is there still room for negotiation?
With the US further escalating tariffs, the Ren-US trade war has escalated again. Ren's countermeasures target the US's core industries such as agriculture, military, and artificial intelligence, while also increasing pressure on the US through company restrictions. However, if the US continues to ratchet up the pressure, Ren's room for retaliation may also be limited.
At this point, the US market remains crucial for Ren's exports, but the trade war with Ren as the main protagonist has already begun, and it remains highly uncertain whether the two sides can resolve the conflict through negotiations.
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.
